Taxes for Small Business Reduced, Costly Medical Mandates Fail
NFIB here in North Dakota declares the 2023 North Dakota legislative session a success.
Lawmakers adjourned on Sunday April 29th after 75 days in session and debating 990 bills and resolutions. They have five days if they need to call themselves back into special session to address issues before the 2025 session.
“Tax relief is a major priority for our small businesses. The package passed this session reduces and reforms the income tax code as well as providing property tax relief for homeowners,” said NFIB North Dakota State Director Alison Ritter. “The legislature also recognized that new mandates increase costs and limit the growth of our main street businesses by defeating several burdensome proposals.”
There were several big wins for small business owners: income tax and property tax reform which will help small business owners keep more of their hard-earned money, and the blockage of several bills that would have made increased burden and added costs for North Dakota’s small businesses.
HB 1158 – TAX RELIEF – PASSED
$515 million overall package.
Income Tax
- Income tax will be eliminated for single filers making less than $44,725 and married couples making less than $74,750. A 1.95% tax would apply to income between $44,725 – $225,975 for single filers and $74,750 – $275,100 for married couples. A 2.5% tax would be applied to income above those thresholds.
Property Tax
- $157 million in relief for property tax credits for homeowners. For the 2024 tax year, a $500 property tax credit will be available to homeowners on their primary residence.
- The remainder of the tax relief is focused on the homestead tax credit. The increased tax credit will provide assistance for homeowners 65 and older who have income below $70,000.
HB 1540 – CHILDCARE ASSISTANCE – PASSED
This bill provides $65.6 million in funding to assist with childcare in the state. Governor Burgum had originally proposed $76 million in his executive budget. Most of the funding is dedicated to existing programs. The funding includes:
- $22 million to expand the existing childcare aid program for families with an income below $80,000 per year for a family of four.
- $15 million to incentivize existing daycares to take on more infants and toddlers.
- $15 million for training of childcare workers and to incentivize daycares to start up new businesses and take on new clients.
- $5 million to match private employers’ contributions for their employee’s day care costs.
HB 2170 – Minors working in construction – PASSED
- This bill allows minors 16 and older to work in a hazardous occupation if the minor is in a registered apprenticeship program or is a student learner of an approved career and technical education program. The bill also includes a study on the benefits of creating a state office of apprenticeship.
HB 1487 – SWIPE FEE STUDY – PASSED
- This bill includes a legislative study of the cost to North Dakota retailers for the collection, remittance, and filing of North Dakota sales and use tax.
HB 1460 – MANDATORY PAID FAMILY LEAVE – FAILED
This bill would have created a paid family medical leave program. Employees could voluntarily participate and employers would be required to provide leave to participating employees.
HB 1507 – MINIMUM WAGE INCREASE – FAILED
This bill would have increased the minimum wage to $9/hr and increase it by .25 cents per year after that.
HB 1527 – E-VERIFY – FAILED
This bill would have required employers in North Dakota to verify employment eligibility of new hires through the federal E-Verify system.
